- Summary:
- Tesla plummeted after the We Robot event, but it still has it in it. SoFi share price has found its rhythm. Goldman Sachs is looking up.
Table of Contents
Stability has returned to the stock markets, with investors upbeat over the quarter three earnings season. With Israel delaying its response against Iran, the geopolitical risk has declined significantly this week. However, a surprise upturn in the war rhetoric could potentially spoil the investment mood. Below, we look at three of the top stocks that could return substantial gains in the near-term.
Goldman Sachs: Upbeat revenue outlook
Goldman Sachs share price trades near year-to-date highs as the market remains upbeat over large-cap banks earnings. The investment bank will release its earnings on Tuesday, and investors are hoping for forecast-beatings earnings.
Goldman Sachs (NYSE: GS) reported a revenue growth of 20 percent in the second quarter, and investors are looking at a continuation of the upward trajectory. Its annual dividend of 2.32 percent is an attractive proposition for investors, especially in view of the fact that the bank has consistently returned profits over the years. Goldman Sachs share price is up by 27 percent yeaer-to-date and has gained 8 percent in the last month. In addition, the Fed is expected to lower interest rates in November, and this augurs well for the business ecosystem and financial services.
Goldman Sachs share price key levels
Pivot: The stock will likely pivot at 519.90. The buyers will be favoured to take control above this level. Conversely, the sellers could take control below this level.
Support: The first support will likely be at 518.05. Extended bearishness could breach that mark to test 516.15
Resistance: The first resistance will likely come at 522.30. Extended bullishness could break above that level to test 523.90.
SoFi: Business model and first low Interst rates since listing
SoFi share price found its rhythm in the last month and has gained 19 percent during that period. However, it is still at -9 percent year-to-date, which doesn’t tell the whole story. Started in 2011, SoFi (NASDAQ: SOFI) has transformed its business model from one targeting students with loan financing and refinancing to one that offers a broad spectrum of financial services including commercial loans, insurance service and investment advice.
The firm just announced a $2 billion agreement with Fortress Investment Group. That will expand its loan platform capacity which is purpose-built for its member-centric, digital-focused business model. SoFi Technologies Inc added 634,000 members in the second quarter of the year, a 41 percent growth year-over-year.
This signals that the firm is striking the right codes with its business model, which could raise the upside for its growth. SoFi only stated trading publicly in mid-2021 and its growth has taken time to pick up. However, its performance this year signals that it is building traction that could set the stage for a stronger growth.
Also, the onset of low interest rate regime is good news for SoFi. It is the first time that the financial institution is experiencing what it means to operate in a low interest rate since it went public. The Fed announced the first rate cut in four years- a 50 basis points interest rate cut- in September and another 25 bps cut expected in November. This could substantially help SoFi expand its membership and grow its loan book.
SoFi share price key levels
Pivot: The stock will likely pivot at 9.60. The buyers will be favoured to take control above this level. Conversely, the sellers could take control below this level.
Support: The first support will likely be at 9.35. If the bears extend their control, the stock could breach that mark to test 9.15
Resistance: The first resistance will likely come at 9.60. Extended bullishness could break above that level to test 10.00.
Tesla: More details on robotic products?
Tesla stock price dropped by 9 percent on Friday on the heels of an apparent dissatisfaction with its robotaxi unveiling. The We, Robot event launched three AI-centric products, the robotaxi, the robocab and the Tesla Optimus, a humanoid robot. However, the market wasn’t as thrilled with the products. Uber stock price gained more than 5 percent in the aftermath of the robocab launch after investors deemed the fully autonomous EV car as posing little threat to Uber’s taxi cab dominance.
However, as I stated here earlier, Tesla (NASDAQ: TSLA) didn’t fail on this particular occasion. In fact, the company overdelivered. While the focus was initially on the robocab, Elon Musk also brought a fully autonomous 20-seater mini-bus and a humanoid robot to the party. If the robocab had been the force behind TSLA’s stock price rally in the run-up to the We,Robot event, then there’s an even greater reason for it to rise some more.
Tesla will announce its third quarter earnings in the next nine days, and that could provide a catalyst for fresh volatility. In the coming days, the company will likely be divulging more details regarding the three products it unveiled last week. This could ultimately prove to be a greater force behind the share price than the earnings.
Tesla stock price key levels
Pivot: The stock will likely pivot at 214.00. The buyers will be favoured to take control above this level. Conversely, the sellers could take control below this level.
Support: The first support will likely be at 207.99. Extended bearishness could breach that mark to test 200.01
Resistance: The first resistance will likely come at 223.79. Extended bullishness could break above that level to test 230.00.
